Commercial Credit Group (CCG) is marketing $309 million of securities backed by construction, transportation and waste management equipment loan and lease contracts.
The transaction, called CCG Receivables Trust 2015-1, is the fifth term ABS for the issuer.
DBRS has assigned preliminary ‘R-1’ rating to $83 million of money market notes that mature on September 2016; an ‘AAA’ rating to two tranches of note: $135 million of class A-2 bonds that mature on November 2018; and $70.4 million of class A-3 bonds that mature on January 2023. The senior bonds all benefit from credit enhancement of 10.75%.
At the subordinate level, the trust will offer $21.6 million of ‘A’ rated class B notes that mature on January 2023 and benefit from 4% credit enhancement.
Loans and leases included in the pool are consistent with CCG’s overall managed portfolio and the collateral pools which secured the issuer’s previous deals. The collateral consist of 1,788 contracts with 1,143 obligors. The average contract size and obligor balances were $178,971 and $279,965, respectively.
These loans and leases are used to finance mobile cranes, earth-moving equipment, waste-collection trucks and containers, over-the-road trucks and trailers as well as other income-producing assets.
CCG has been in business since 2004 and has originated approximately $2.2 billion of equipment loans and leases. The issuer benefits from availability of diversified funding sources including equity and unsecured subordinated debt from a group of private equity firms, secured asset-backed and revolving bank facilities provided by multiple financial institutions as well as two outstanding term ABS transactions.